Negative impactEconomy
US PERM suspension: How the move could impact Indian IT companies
BusinessLine 58 min ago·9 Oct 2026, 7:52 am
The US Department of Labor has suspended the PERM (Program Electronic Review Management) process, a key step for employers to sponsor green cards for foreign workers. This suspension, effective immediately, halts the certification of labor certifications, which are required to hire foreign nationals for permanent roles. The move is part of broader efforts to prioritize American workers in the labor market.
For Indian IT companies, which have a significant workforce of employees on H-1B visas and green cards, this suspension could complicate their hiring and retention strategies. While many firms have diversified their client base and reduced reliance on the US visa programme, the policy change may still create operational hurdles and increase administrative costs. It also highlights the persistent immigration-related risks that global IT firms face.
Investors should monitor how major IT companies manage these challenges and whether they are adjusting their growth projections. The long-term impact will depend on the duration of the suspension and the eventual policy direction. Watch for updates on visa processing timelines and any strategic shifts in workforce planning by leading IT firms.
Excerpt from BusinessLine
The suspension of the permanent labour certification (PERM) process in the US could add yet another layer of uncertainty for Indian IT services companies, already grappling with tighter immigration rules and rising costs of deploying talent onshore. Although Indian IT companies have reduced their dependence on the US…Read the original at BusinessLine
Key takeaways
- Category: Economy.
- AI reads the tone as negative (potentially bearish) for the stock.
- Assessed as a significant, market-relevant update.
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